Swiss regulation does not make any provisions on the subject.
In order to ensure an orderly market in certain financial instruments, European regulation introduces a compulsory tick size regime across the EU. The targeted harmonization of tick sizes shall mitigate in particular the risks associated with ever-decreasing tick sizes for shares, depositary receipts and certain types of ETFs.
With respect to non-equity financial instruments and fixed income products, a large proportion of trading is executed using different trading methodologies and the regulation of the market via a mandatory tick size regime is not necessary. All other instruments are therefore exempted from this provision.
The general approach is to align all trading segments to the new MiFID II tick size tables (where applicable). We will keep flexibility for either cross-listed products as well as products that do not fall under the new regime according to MiFID II. Exact details of how this will be implemented are still under evaluation.
|SSX trading segments||Tick-size table harmonization|
|Equities||Under Evaluation - new!|
|SFS||Under Evaluation - new!|
|ETF / ETSF / ETP / SF / IF||Harmonize tick-size table - new!|
|CHF / Non-CHF Bonds||Not applicable - no change|
|Structured Products||Not applicable - no change|
|Service / venue|
|SLS||Mid-Point Execution - tick dependant on the primary market of the instrument which is going to change in some cases.|
|SCB||Not applicable - no change|
|XBTR||Not applicable - no change|
We believe the approach outlined is aligned to the principles of EU law but is subject to regulatory approval. Implementation is scheduled for SMR7 (2017)
A: For Blue Chip Shares and Mid-/Small-Cap Shares there are still on-going conversations on tick sizes for Swiss instruments under MiFID II, which will influence this decision. We are focussed on providing the best possible result for our participants in terms of liquidity and price and will continue to evaluate tick size options as more information becomes available.
For SFS (Sponsored Foreign Shares) the intention is that the tick size for European instruments traded in their native currency will match that of the market of primary listing. The tick size for CHF listed instruments is still under evaluation.